13-1

Connect Illinois Round 4 utilizes federal funds from the U.S. Department of Commerce’s National Telecommunications and Information Administration (NTIA) through the Broadband Equity, Access, and Deployment (BEAD) Program, which was authorized by the Infrastructure Investment and Jobs Act of 2021, Division F, Title I, Section 60102, Public Law 117-58, 135 Stat. 429 (November 15, 2021) (Infrastructure Act or Act), also known as the Bipartisan Infrastructure Law. BEAD-funded Connect Illinois Round 4 deploys broadband service to unserved and underserved locations. In accordance with the BEAD Program, this program prioritizes projects that provide fiber connectivity directly to the end-user while considering projects that use other technologies to ensure universal coverage. Connect Illinois is authorized by Section 605-20 of Department of Commerce and Economic Opportunity Law [20 ILCS 605] and The Broadband Infrastructure Advancement Act [220 ILCS 81]. Connect Illinois represents an integral and strategic component of both the comprehensive 2019 Rebuild Illinois infrastructure program and the State’s five-year economic plan to expand economic opportunity and reduce socio-economic gaps through equity investment. Through multiple rounds of competitive matching grants, Connect Illinois aims to achieve ubiquitous, statewide broadband access for homes, businesses, and community anchor institutions. At the same time, Connect Illinois has sought progress in digital equity and inclusion while leveraging investment in new broadband infrastructure to advance use and innovation in such areas as agriculture, economic development, education, and telehealth.

Infrastructure Investment and Jobs Act of 2021, Division F, Title III, Public Law 117-58, 135 Stat. 429, 1209

Infrastructure Investment and Jobs Act of 2021, Division F, Title III, Public Law 117-58, 135 Stat. 429, 1209

2 C.F.R. Part 200

Performance Goals and Measures: The primary goal of the Program is to make progress toward achieving universal broadband access statewide and digital equity by 2030. Details of these goals are included in the State’s BEAD Five-Year Action Plan and Initial Proposal Volumes I and II. Subgrantees will be required to submit performance data to the State on a quarterly basis, as well as to report the completion of project milestones as defined in each subgrantee’s award agreement. Subgrantees will be required to submit reports on program performance metrics, which will include but not be limited to: • Number of unserved BSLs that are now served (i.e., 100/20 Mbps); • Number of underserved BSLs that are now served (i.e., 100/20 Mbps); • Number of BSLs with access to minimum 100/100 Mbps broadband service; • Number of schools, libraries, and public health-related entities with access to minimum 1 Gbps symmetrical broadband service; • Number of other eligible CAIs with access to 1 Gbps symmetrical broadband service. For more details on reporting requirements, please refer to Section F of this NOFO.

Yes

As outlined in the BEAD NOFO and the Guidance for Federal Financial Assistance from the Office of Management and Budget as of April 4, 2024, Subpart F of 2 C.F.R. Part 200 requires any non-federal entity that expends federal awards of $1,000,000 or more (effective for grantee fiscal years beginning on or after October 1, 2024) in the recipient’s fiscal year to conduct a single or program-specific audit in accordance with the requirements set out in the Subpart. Additionally, unless otherwise specified in the terms and conditions of the award, entities that are not subject to Subpart F of 2 C.F.R. Part 200 (e.g., commercial entities) that expend $1,000,000 or more (effective for grantee fiscal years beginning on or after October 1, 2024) in grant funds during their fiscal year must submit to the Grants Officer either: (a) a financial or related audit of each DOC award or subaward in accordance with Generally Accepted Government Auditing Standards or (b) a program-specific audit for each award or subaward in accordance with the requirements contained in 2 C.F.R. § 200.507. The NTIA, the Department of Commerce Office of Inspector General, or another authorized federal agency may conduct an audit of an award at any time.

Government Organizations; For-Profit Organizations; Nonprofit Organizations; Small Businesses; Other;

Additional Program Requirements: All applicants must be compliant, or agree to comply, with all federal and state laws and related regulations to be considered for an award, including, but not limited to: • Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards at 2 C.F.R. Part 200 • The Department of Commerce Financial Assistance Standard Terms and Conditions • General Terms and Conditions of the BEAD Program • The Illinois Human Rights Act • The Public Works Employment Discrimination Act See Section F for additional details.

Households who subscribe to internet services funded by the BEAD program.

Project Grants

Economic Development

1. Eligible Applicants. Eligible participant type: Entities that can deploy broadband are eligible to apply. Eligible entities include, but are not limited to, an incorporated business or partnership, a political subdivision, a nonprofit organization, a cooperative association, or a limited liability corporation organized for the purpose of expanding broadband access. As required by the Infrastructure Act, the State shall not exclude cooperatives, nonprofit organizations, public-private partnerships, private companies, public or private utilities, public utility districts, or local governments from eligibility for grant funds for broadband deployment projects. Participants leveraging Reliable Broadband Service technology or Alternative Technology are eligible to participate. Connect Illinois Round 4 will consider technology types in the prioritization approach outlined in the BEAD NOFO and Section E of this NOFO. Eligible participant qualifications: As detailed in the BEAD NOFO, IV.D, and the State’s Initial Proposal Volume II, below is a high-level list of qualifications that subgrantees must meet to receive BEAD funding, among others. These requirements will be incorporated into the Connect Illinois Round 4 process by including them in grant agreement terms and conditions, and grant-monitoring program requirements. Applications that do not meet the minimum qualifications outlined below, in the BEAD NOFO, IV.D, and other relevant sections, will not be considered for BEAD funding. Category Qualification: certifications regarding relevant requirements, compliance, and other information pertinent to BEAD qualifications Financial capabilities Financial certification Evidence of sufficient funding Letter of credit and relevant details / supporting documents Financial statements Business plans Managerial capabilities Résumés Organizational chart(s) Managerial readiness Technical capabilities Technical qualifications Use of skilled and credentialed workforce Network design, diagram, project costs, build-out timeline and milestones for project implementation, all certified by a Professional Engineer Capital investment schedule Legal and regulatory compliance History of compliance Commitment to comply with all laws Occupational safety and health requirements Operational capabilities years of service [Applicable to prospective subgrantees that have provided a voice, broadband, and/or electric transmission or distribution service for at least two (2) consecutive years prior to the date of their application or that are wholly owned subsidiaries of such an entity] Certification and evidence of timely FCC Form 477 and Broadband DATA Act submissions [Applicable to prospective subgrantees that have provided a voice and/or broadband service] Certification of timely submission of qualifying operating and financial reports to relevant institutions [Applicable to prospective subgrantees that have operated only an electric transmission or distribution service] Narrative and evidence of operational capacity [Applicable to new entrants] Ownership Ownership information consistent with the requirements set forth in 47 C.F.R. § 1.2112(a)(1)-(7) Stewardship of other public funding Lack of federal debarment No previous history of incomplete projects Disclosure of other broadband projects in the State of Illinois Progress update on RDOF & CAFII awards in the State of Illinois Labor requirements History of compliance with labor laws Plans for ensuring compliance with federal labor and employment laws [If applicable] Certification that a project includes a project labor agreement (PLA), with a copy of the PLA Additional guidance for consortia participants: Two or more entities otherwise eligible to bid for BEAD deployment subgrants may submit a bid as multi-entity partnerships and consortia. In these cases, the entity must submit the underlying consortium agreement between the parties, the consortium’s organization

Each applicant (unless the applicant is an individual or Federal or State awarding agency that is exempt from those requirements under 2 CFR 25.110(b) or (c), or has an exception approved by the Federal or State awarding agency under 2 CFR 25.110(d)) is required to: (i) Be registered in SAM. To establish a SAM registration, go to www.SAM.gov and/or utilize this instructional link: How to Register in SAM from the www.grants.illinois.gov Resource Links tab. SAM.gov registrations must be “public.” (ii) Provide a valid UEI number in the GATA Grantee Portal registration. (iii) Continue to maintain an active SAM registration with current information at all times during which it has an active Federal, Federal pass-through or State award or an application or plan under consideration by a Federal or State awarding agency. The State awarding agency may not make a Federal pass-through or State award to an applicant until the applicant has complied with all applicable UEI and SAM requirements and, if an applicant has not fully complied with the requirements by the time the State awarding agency is ready to make a Federal pass-through or State award, the State awarding agency may determine that the applicant is not qualified to receive a Federal pass-through or State award and use that determination as a basis for making a Federal pass-through or State award to another applicant.

A standard application package must be submitted and reviewed by the State, which entails the following: • Entity Submission Form (Part 1): Applicants shall submit materials required for BEAD qualification at the entity-level, including but not limited to: ? Entity-specific qualifications; ? State of Illinois Conflict of Interest disclosure; ? State of Illinois Mandatory Disclosures; and ? W-9 form. This form should be submitted once per entity. Successful completion of the Entity Submission Form will generate an Entity Form ID, which must be submitted across all subsequent project and application form submissions. This Entity Form ID will be sent to the primary and secondary contact email addresses submitted in the application. • Project Submission Form (Part 2): Applicants shall submit materials pertaining to the proposed Connect Illinois Round 4 project, for both meeting BEAD qualifications as well as for project scoring purposes. This includes but is not limited to: ? Project-specific qualifications; ? Additional project-specific materials for scoring; ? Budget utilizing the template provided by the State for this project; and ? State of Illinois Uniform Grant Application in fillable PDF format, with the signature page printed, signed, and submitted. This form should be submitted for each proposed project by the given entity (i.e., multiple submissions would be needed if the same entity is applying for multiple projects). This submission must include the Entity Form ID generated above, with the same Entity Form ID submitted with each Project Form submission to link back to the entity materials submitted in Part 1. Each successful completion of the Project Submission Form will generate a Project Form ID that must be submitted as part of the subsequent application form response below. This Project Form ID will be sent to the primary and secondary contact email addresses submitted in the application. • Application Submission Form (Part 3): Applicants must submit the Entity Form ID and the Project Form ID of the submissions they wish the State of Illinois to review, which would count as the official completion of the application to the State of Illinois. Only the materials associated with the IDs submitted through the Application Submission Form will be reviewed by the State of Illinois. This form must be submitted for each proposed project that the entity wishes the State of Illinois to consider for the given Wave. Please refer to the Application Guidebook for details on these requirements.

1. Criteria. Scoring criteria: The State intends to award grants to projects that help advance the Connect Illinois vision while demonstrating optimal use of BEAD funds. An Evaluation Committee team will review and evaluate all applications. This team will use standard criteria and associated point values to evaluate grant applications consistently and uniformly. The criteria and associated weights outlined below, per the BEAD Initial Proposal Volume II, will be applied to information provided by the applicant in response to the requirements of this NOFO. Applicants will be held accountable via the subgrantee agreement to commitments made toward the scoring criteria. Primary Criteria (80%) Minimum BEAD Program outlay: Non-state match Points will be allocated based on the degree to which non-state match exceeds 30 percent. 20% Minimum BEAD Program outlay: Financial need with respect to reference cost Points will be allocated based on how much the application's required BEAD outlay deviates from the reference cost published by the State. 30% Affordability Points will be assigned based on the price the applicant offers for either 1Gbps/1Gbps for Priority Broadband Projects (end-to-end fiber) or 100/20Mbps for other broadband projects, compared to monthly reference prices outlined in Initial Proposal Volume II. 15% Fair labor practices Points will be assigned based on the applicant’s demonstrated record of and plans to comply with federal labor and employment laws and submission of a project labor agreement. 15% Secondary Criteria (20%) Speed to deployment Points will be assigned based on enforceable deployment plans within two years of executed grant agreement. 3% Speed of network and technical capabilities Points will be assigned based on performance levels and the scalability of networks. 4% Open access and use of existing network Points will be assigned based on the provision of open access and use of existing networks. 3% Local coordination: Evidence of community support* Points will be assigned based on the breadth and depth of community support for the project. 5% Local coordination: Verified financial commitment from community Points will be assigned based on verified financial investment by community members and organizations. 5% * The State will consider the following factors in evaluating evidence of community support: (a) degree of “personalized” letters that reflect a broad spectrum of community members; (b) degree to which project fits into an existing community strategic plan; (c) recent survey that covers broad spectrum of community with statistically meaningful results regarding level of need, gaps, and project support; (d) evidence of community outreach efforts to gauge interest in project; and (e) other community feedback that shows compelling need and project support. Community feedback is defined by letters of support and input from: community members, local governments, non-profits, neighborhoods, employers, small businesses, CAIs, and other members of the community where a project is proposed. Evidence to support verification of pledge must be submitted to demonstrate the cited community commitment to receive points (e.g., signed letter of intent, signed letter of commitment, municipal resolutions, etc.). For further details, please refer to the Application Guidebook and the Connect Illinois Initial Proposal Volume II, Requirement 2.4.2.1.

2. Review and Selection Process. Applications will be graded using the Merit Review Process and scored on the criteria specified in Section E.1. The State will designate an Evaluation Committee to grade each application received for this funding opportunity. The final score of each Committee member will be calculated and an average of all scores will be the final applicant score. Grants will be awarded through a multi-phase Merit Review Process that consists of two waves of applications and preliminary selections, followed by an optional third wave. Wave Projects Eligible for Preliminary Selection Wave 1 Project type: Proposals where a minimum of 10 percent of the proposed Project Area is composed of Hard-to-serve Project Area Units Note: Selected Hard-to-serve Project Area Unit(s) must be contiguous with a non-Hard-to-serve Project Area Unit within the proposed project area (details below). Technology type: Priority Broadband Projects (end-to-end fiber) that meet the scoring threshold and BEAD qualifications Wave 2 Project type: Any projects, regardless of “hard-to-serve” status Technology type: • Priority Broadband Projects that meet the scoring threshold and BEAD qualifications. • Non-Priority, Reliable Broadband Service Projects that meet the scoring threshold and BEAD qualifications will be considered if: • The BEAD subsidy cost per location of Priority Broadband Projects covering the same area exceeds the EHCPLT; or • There is no eligible Priority Broadband Project for the area. Wave 3 (optional) Project type: Any projects, regardless of “hard-to-serve” status Technology type: • Priority Broadband Projects that meet BEAD qualifications. • Non-Priority, Reliable Broadband Service Projects that otherwise meet BEAD qualifications will be considered if: • The BEAD subsidy cost per location of Priority Broadband Projects covering the same area exceeds the EHCPLT, or • There is no eligible Priority Broadband Project for the area. • Alternative Technology projects may be considered on a case-by-case basis if, after directly engaging providers: • The BEAD subsidy cost per location of any Priority Broadband Project or Non-Priority Reliable Broadband Service project covering the same area exceeds the EHCPLT; or • There is no eligible Priority Broadband Project or Non-Priority Reliable Broadband Service Project for the area. Grants will be awarded following the NTIA’s approval of the State’s Final Proposal. Project Area Units that have been preliminarily selected will be published at the end of each wave and applicants will be notified if they have been preliminarily selected. The process to make preliminary selections for each wave is as follows. Note that applicants are expected to follow through with their application(s) should they be preliminarily selected, and it is thus expected that the applicant has the capabilities and capacity to successfully execute the full set of applications they submit. Wave 1. Wave 1 focuses on hard-to-serve areas in the State and end-to-end fiber applications. Specifically, the State will review all applications where at least 10 percent of the proposed Project Area is composed of Hard-to-serve Project Area Units. The State requires the selected Hard-to-serve Project Area Unit(s) and non-Hard-to-serve Project Area Unit(s) in the Project Area to be contiguous, meaning there are no non-selected Project Area Units in the way when a straight line is drawn between the selected Hard-to-serve Project Area Unit(s) and the closest selected non-Hard-to-serve Project Area Unit(s). The State will rank all applications from highest to lowest by score and conduct deconfliction where there is overlap. An application may not be considered eligible for Wave 1 should the deconfliction process remove all Hard-to-serve Project Area Units from the originally proposed Project Area, but the State may adjust the requirement that the project area be at least 10 percent Hard-to-serve PAU(s) for a resubmission.

TBD

365 days

The Merit Based Review process is subject to appeal. However, competitive grant appeals are limited to the evaluation process. Evaluation scores may not be protested. Only the evaluation process is subject to appeal. The appeal must be submitted in writing to the Department within 14 calendar days from the date of the denial letter. The written appeal shall include the name and address of the appealing party, the identification of the grant and a statement of reasons for the appeal. To file an appeal, applicants must submit the appeal in writing and in accordance with the Merit-Based Application Review Appeals Process listed on the Grant Opportunities page of the DCEO website: https://www2.illinois.gov/dceo/AboutDCEO/GrantOpportunities/Pages/MeritAppReview.aspx

No

25%

Eligible costs as they pertain to locations that are not unserved or underserved: Per the BEAD NOFO, up to 20 percent of the project may be composed of BSLs that are not unserved or underserved. An applicant who chooses to include such locations must only select locations within the Project Area Unit(s) that comprise their Project Area. The applicant must submit a list of all selected locations that are not unserved or underserved as part of their application, and share the rationale for doing so to demonstrate how including these locations is necessary for the proposed project. The State will closely review funding requests for locations that are not unserved or underserved to ensure the efficient use of BEAD funds, and reserves the right to reject funding requests for these locations and to request a revised application that does not include these locations. Ineligible Costs that are ineligible for the BEAD program may not be paid for with matching funds committed to an award. The following costs are specifically identified as prohibited under the BEAD program: • Use of grant funds for covered communications equipment or services under the Secure and Trusted Communications Networks Act. A subgrantee (including their contractors and subcontractors) may not use grant funds received under the BEAD program to purchase or support any covered communications equipment or service, as defined in Section 9 of the Secure and Trusted Communications Networks Act of 2019 (47 U.S.C. § 1608). • Profit and fees. A profit, fee, or other incremental charge above the actual cost incurred by a subgrantee is not an allowable cost under this Program. • Use of grant funds to support or oppose collective bargaining. A subgrantee may not use grant funds – whether directly or indirectly – to support or oppose collective bargaining. Additionally, indirect costs may not be included in this opportunity. Additional information regarding award execution and grant agreements Award information: Applicants must submit a project narrative that describes in detail how the award will be executed. The project narrative should include sufficient information regarding the project scope, the budget, and any additional information that would enable the DCEO to manage the grant agreement activity according to planned project performance expectations. Payment terms and use of fixed-amount subawards: Funds will be disbursed through fixed-amount subawards based on the milestones defined in the grant agreement and in compliance with the NTIA’s guidance on the implementation of exceptions, adjustments, and clarifications to certain provisions of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), codified at 2 CFR Part 200, and the application of related provisions of the Uniform Guidance to the BEAD Program. In accordance with the NTIA’s “Policy Notice: Tailoring the Application of the Uniform Guidance to the BEAD Program,” payments to subgrantees under fixed-amount subawards shall be made on a reimbursement basis in accordance with the terms of the grants. Pursuant to 2 CFR 200.201(b)(3), the subgrantees must certify in writing to the State at the end of the BEAD award that the broadband infrastructure project funded under the fixed-amount subaward was completed. Accordingly, a subgrantee receiving a fixed-amount subaward must certify to the State that the broadband infrastructure project was placed into service – as defined in 47 USC 1702(h)(4)(C) for last-mile broadband deployment projects or in the grant agreement for all other broadband infrastructure projects – by the end of the State’s period of performance.

Quarterly PPR and PFR

N/A

N/A

636-42035-4900-0999

$1,000,000,000.00

$1-1,000,000,000

CFR 200.202: https://www.ecfr.gov/cgi-bin/text-idx?SID=bd9749097b3a93191e830b7384ffdaae&mc=true&node=se2.1.200_1202&rgn=div8

https://dceo.illinois.gov/content/dam/soi/en/web/dceo/connectillinois/documents/may-2024-connect-illinois-initial-proposal-vol-2.pdf

N/A

500 East Monroe Springfield, IL 62701 and 555 W Monroe St, 12th Floor Chicago, IL 60661

https://dceo.illinois.gov/connectillinois/bead.html

Connect Illinois Rounds 1-3

A grant to support an internet provider to construct their Broadband network

FY 2026 : $1,000,000,000